ARB Corp’s trading update showed stronger than expected operational momentum with the profit margin benefiting from scale, reduced cost base, subsidies & FX, comment the analysts.
Macquarie finds the immediate outlook for ARB remains positive, carried by a strong orderbook, but also believes visibility into FY22 is rather low. Neutral rating retained. Price target improves to $33.50 (versus $29.50 in November last year).
Sector: Automobiles & Components.
Target price is $33.50.Current Price is $33.47. Difference: $0.03 – (brackets indicate current price is over target). If ARB meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
